Pages

Monday, 11 March 2013

MoD locked in BAE talks

The defence minister, Philip Dunne, has revealed that the Government is still
locked in talks with BAE Systems over the future of British shipbuilding and
issued a veiled threat about the implications of Scottish independence.

The minister for defence equipment, support and technology, said BAE
had submitted plans for its shipyards but no decision had been taken on
potential closures.

“The company has made some proposals and they’re being considered by the MoD
but it is ultimately their decision and we’re right in the middle of
discussion,” he said.

BAE
has warned that it might have to stop shipbuilding at one of its sites,
with the spotlight on Portsmouth and its two yards in Glasgow, at Govan and
Scotstoun.

The decision hinges on future work available, with a gap in the British
building programme expec­ted once the two Queen Elizabeth class aircraft
carriers are completed but be-fore the Type 26 Global Combat Ship programme
begins.

The assumption is that under current plans there will be insufficient work to
sustain all three shipyards, and there has been speculation that the Type 26
work will go to the Glasgow yards, prompting the end of shipbuilding at
Portsmouth and loss of up to 1,500 jobs.

Mr Dunne would not be drawn on specific proposals for the shipyards, but on
the question of a Scottish referendum on independence he noted that the
Government did not have a history of buying its warships outside Britain.
“The MoD as is the rest of the Government is working on the basis that
Scottish people will not support an independence referendum so we’re
assuming that Scotland remains part of the UK.